It seems that Meezan Bank is making huge strides in the country’s banking industry as the financial institution posted an unconsolidated profit of PKR 5.562 billion in 2016. The profit indicates an increase of 11% compared to PKR 5.023 billion earned during 2015. Reports also indicate that the bank has been making efforts to diversify its services in a bid to cater the need of its customers.
The financial institution also experienced a surge in earning despite lower interest rate that prevailed in the banking industry last year. According to the press release, the bank recorded earning per share of PKR 5.55. The board of financial institution recommended a final cash dividend of PKR 1.25 per share for 2016, which takes the total payout for the year to PKR 3 per share or 30%.
“A significant achievement during the year was the impressive increase in the financing portfolio of the bank that increased 50 percent to Rs312 billion, the bank said. “This growth in financing has outpaced the 17 percent average financing growth of the banking industry during the same period,” as mentioned in bourse filing.
Industry watchers believe that considering the recent moves made by Meezan Bank, it seems that the financial institution is working hard to retain its position as a market leader in both Takaful and conventional business segments. Adding to that, Meezan Bank is currently focusing on capturing quality credit opportunities in a stagnant private sector market and is pursuing growth in financing in all segments especially in Consumer and Commercial financing, which grew 66% and 62% respectively over the past year.
In any case, it is safe to assume that Meezan Bank is working really hard to deliver strong results and is well positioned to leverage the upcoming economic opportunities.